You know those claims you hear about certain
things, yet you’re never certain if it’s just people talking hearsay and not
providing any sort of evidence as to what they’re saying? Sometimes, you just
want to question them to see if they know what they’re talking about.

Well, life insurance is one of those things most
people know they should likely have, but a lot of myths surround the topic.
Here, we’ll put to rest some of those claims you may have heard about this type
of insurance.

1. I’m single with no dependents and
don’t need coverage.
You still need enough insurance to cover any personal debts you may have, along
with medical and funeral bills that could rack up in the event you’re struck by
disaster. You don’t want to leave unpaid expenses to your family or someone
else if you happen to be uninsured. Another thing is that you can leave money
to a charity of your choice if you do happen to be single with a low income.

2. I must
have life insurance at any cost.
You should probably have it in most cases. The thing is, certain individuals
with huge assets but no debt or dependents might choose to not insure their
lives. If you have funeral costs covered, too, this type of insurance is
considered optional.

3. My coverage should be two times my
salary.
Your insurance needed is dependent on your own situation, with many factors
that need weighed. Not counting your medical and funeral bills, you may also
need to pay off a mortgage and even provide for your family over the course of
several years. The true amount of insurance you might purchase all comes down
to a cash flow analysis. It’s not as easy as doubling your yearly salary.

4. My term life coverage at work is
already enough.
It could be, especially if you’re single and your employer’s coverage is decent
enough. But if you’re married or have other dependents or know that you’ll need
extra coverage upon death, you may actually need a separate policy to help
cover the needs.

5. Only the person making the money
needs coverage.This is far from the truth. Even if one spouse is making significantly more
money than the other or one is stay at home, there are other factors to
consider such as daycare and cleaning costs that the stay-at-home spouse may
have been responsible for.

Oftentimes, we make a list of goals, or
resolutions, when the new year rolls around. These are meant to get us on track
to a healthier, better, more fulfilling life than our time was last year.
Because we’re all meant to improve, to get better after reflecting, right?
That’s sort of the goal.

So, a lot of these resolutions end up being
things like lose weight, or put on muscle, or even to travel more. You know,
the ones that end up on everyone’s list
of resolutions.

Sometimes, though, you’ll see more unlikely
items. People will put their career aspirations on their list. Or financial
goals. Or to learn a new language. These are the uncommon goals that have more
payoff if reached, but that’s the reason they’re rarer: they’re not as easy to
attain.

But when does considering the long term (as in, past this new year and other new years
down the road) become a part of our short term? What about the future of our
finances? What about our kids that aren’t born yet? Why aren’t some of these
things part of our lists of new year’s resolutions?

One that I think should be on everyone’s list (if
they don’t have it yet) is life insurance.

Seems kind of out there to put this on your
resolution’s list, right? Well, we don’t think so. Having this type of
insurance set up poses a ton of positives you’ll have going for you.

To start, life insurance is much cheaper when you’re younger and healthier. So even if you’re not married yet or don’t have kids at the moment, it’s not a bad idea to be on a policy so that your rates will remain fixed for a long time. Rather than paying more in 5 years when you finally do have kids, why not pay less now so that you can save over time?

Additionally, having this insurance is absolutely great if you’re married. You don’t want to leave your spouse hurting even more if disaster hits. Having insurance will at least set them up for financial security if something were to happen.

So, rather than adding another small and useless
goal to your list of resolutions that you likely will forget about in a month,
why not put a checkbox on there to tick off once you purchase a policy for your
life? You’ll be getting a lot more value out of that than most other
resolutions.

When beginning an investment portfolio, many
financial advisors suggest that this should be in the first wave of things you
purchase or invest in. However, many people are unaware of the benefits and
advantages of owning a life insurance policy. The common trend is that life
insurance is for “older folks” who are close to dying and want to make sure
that they leave something behind. This could not be further from the truth, as
the best time to buy life insurance is when you are young and health. This and the
other advantages of owning a life insurance policy are listed below.

The Death Benefit:

The whole life insurance policy assures you a
guaranteed death benefit that never decreases and upon death, is usually free
of federal income taxes a well as federal estate taxes. This is a huge
advantage for those left behind after the person has passed on, as this income
can help cover the cost of the funeral and any other expenses that need to be
taken care of. Giving your family peace of mind is so important as well. If you
were to tie at an early age, although unlikely, the death benefit will provide
a huge sum of money to care for your loved ones.

Level Premiums:

Unlike other investments or other types of
insurance, whole life insurance premiums remain the same throughout the entire
time you own the policy. That is why many financial advisors suggest purchasing
a life insurance policy early on in life, as the premiums will never get
cheaper than during that time period. Being young and healthy insures the cost
being low because you are not likely to pass away anytime soon. Take advantage
of that and purchase a whole life policy.

Cash Value and Dividends:

Another advantage of owning a whole life
insurance policy are the cash values it produces. At any given time, cash can
be “borrowed” by the policy owner for whatever reason he or she should choose.
And, if at any time you need to cancel the policy for some reason, you will
receive a lump sum of the cash you have accumulated, tax deferred. Some life
insurance policies also produce dividends which can be used to gain cash, or
reduce some of the next premiums

If you are struggling to come up with last minute
gifts, it is time to start thinking about what is truly important for each of
your loved ones. Some people like to get things for entertainment, others like
to get things for practicality, and still others like to get things that can be
viewed as investments. Use this holiday shopping guide to help finalize that
last minute Christmas shopping.

This is a great year to spend some money and
invest in a great entertainment system. Now, you can either choose to get the
traditional entertainment system, like a cabinet that will hold the TV and
speaker, or you can choose to grab a new gaming console, like the Xbox 1 or
Nintendo Switch. Or you can double down and get both, and that way you have a
new “entertainment” system, for your entertainment system! The new trend is to
get a smaller game system like the Nintendo Switch. The trend in cabinets right
now is something that is small, compact, and usually a solid neutral color like
dark grey or black. No matter what you decide here, the Switch and the new
cabinet will look great with that new 60” TV you just got.

If you are wanting more of a practical gift for
someone, you could choose to gift some type of lesson, like piano or golf. This
type of gift works well for your children or for a special niece or nephew who
you know is trying hard to improve at something. What is great about these
gifts is that the lessons can be spaced out for the next six to twelve months,
so it is not just a one time that gets used right away. A practical gift could
also be getting someone a bunch of plasticware and paper products. This is
great for helping them get the house stocked and ready for all of those
Christmas and New Year’s parties.

Christmas is also a great time to open a savings
account for a child. There is something special about seeing a child’s eyes
light up when you hand them their first check. Or, if you truly want to help
care for their future, a life insurance policy. While a child may have trouble
understanding this in the moment, the benefit of getting a small policy taken
out on them could help tremendously in the future. For one, it is a truly a
gift that keeps on giving, and two, they really do not have to even think about
it. Life insurance will also give you the gift of having peace of mind if
something terrible would ever happen to your child as well.